Now Tata Nano eyes Asian markets to propel growth

Tata Motors, the Indian auto giant, the developer of the world’s cheapest car has now revealed its plan to venture in similar markets in Asia with its flagship car, the Nano. The car has been launched in India for almost 2 years now but it is facing a great task to capture the market it was made for. The exports of the vehicle is seen in that direction to achieve the numbers that were projected. Sales in the domestic market have been below par for the otherwise profit-generating Tata Motors.

According to media reports, the auto maker is mulling to expand its sales network in neighboring countries of Sri Lanka, Bangladesh and Thailand in the next year coinciding with the time-line by which the demand in the Indian market is expected to gather steam. Carl-Peter Forster, CEO was quoted as saying that the company is making its strategy to go after this country markets in a phased manner. He was of that view that the Nano was nothing less than a raw diamond which requires a bit of polishing. Giving further insights he mentioned that the expected Nano sales were likely to go northward to about 8000 to 10,000 units a month in the near future from the now persistent rate of 6000 to 7000 units. This was attributed to the new marketing initiatives taken by the company to drum up the bruised brand and the decision to continue financing the car up to 100% for buyers who cant come up with the money for a down payment.

The report further divulged that the registration for the Nano in the month of December rose to 5784 car from the pitiful low of 509 units in the month of November. To promote the models Tata motors have offered easier finance and doubled the warranty period. The sales figure of December saw a rise of 60% over last year figures, but it was still lagging behind the July figures of 9000 units. It has been widely reported that Tata Motors has been offering maintenance packages which also includes a Rs 99/ month option. The company is also arranging meeting with Nano owners with first time buyers to address their concerns. It was also revealed that the sales for the car have fallen if we analyze the figures on a month-by-month basis. This is attributed to the safety concerns and the rise in prices. In a direct response to the drop in sales, Tata motors have begun a TV ad campaign in addition to adding more sales point in the smaller towns and it lengthened the warranty period to four years or a mileage of 60,000 km and at the same time launching its new, affordable maintenance plans.